Posts Tagged ‘Malaysia Deposit Insurance Corporation’

Along with other regional move to preserve confidence in the financial sector, Malaysia has stepped in to calm nervous banking depositors by extending full guarantee on the deposits until 2010. The protection will be offered through the existing deposit insurance system managed by PIDM which includes coverage for Islamic deposits.

KUALA LUMPUR: The Malaysian government will fully guarantee, with immediate effect, all ringgit and foreign currency deposits with commercial, Islamic and investment banks regulated by Bank Negara.

Bank Negara and the Ministry of Finance said in a joint statement the guarantee also extended to deposit-taking development financial institutions regulated by the central bank.

The Malaysia Deposit Insurance Corporation Chief assured Malaysians that, with the deposit insurance system already embedded in country’s financial system since the last 3 years, their savings are safe and secured. With the current worldwide credit crisis regardless.

With news about banks failing in other parts of the world, should we worry about our money in the bank? Malaysia Deposit Insurance Corporation chief executive Jean Pierre Sabourin tells TAN CHOE CHOE that our deposits are quite safe and our accounts are insured by the government – at least up to RM60,000 each

Q: French President Nicolas Sarkozy recently said millions of people around the world are worried about their savings. Is it the same here?
A: No. But this is an issue that’s being addressed around the world every day.

We’ve seen, in the last couple of weeks, the concerns about AIG, bank failures in the United States and the bank run in Hong Kong… Depositors want to know “how do I protect my money?”

PIDM forecasts Islamic deposit to increase 10% this year due to more establishment of Islamic banks in the country.

The Islamic deposits which totaled RM21.7 billion this year will provide protection to depositors against the loss of insured deposits placed with an Islamic member institution or in the unlikely event that it is unable to meet financial obligations. This will instill public confidence and promote financial stability.

This follows the establishment of more full-fledged Islamic banks in the country.

PIDM general manager, insurance, risk assessment and monitoring, Md Khairuddin Arshad said the trend showed that more people were investing in Islamic Banks.

“Previously, some commercial banks operated through Islamic windows.But now they seem to have full-fledged Islamic banking services,” he told reporters after presenting a paper entitled, Islamic Deposit Insurance: The Malaysian Experience, at a seminar on Islamic deposit insurance here today.